Small deposit, what are my options?

Posted on 12 January 2010 by Ian Harvie


Hi,

Having recently split up with my wife and signed over ownership of our former marital home to her, I am now in the position to purchase a new home for myself. However I have little money set aside for a deposit, and I am looking at a mortgage of 130,000 and giving a deposit of 15,000. Given that my salary is 110,000 per annum with no outstanding debts, I would like a mortgage over 15 years. Is this a likely mortgage proposal given the current financial climate.

Cheers

Ian

Ian,

Looking at the figures you have given, the good news is that more lenders have recently moved into the high loan to value market and you should have a choice, albeit small, of different mortgage offers.

In addition to your salary, the loan and deposit amounts, lenders will also take into account any maintenance payments that have been agreed and whether or not you have been released from any mortgage covenants on your former marital home.

Peter

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